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Ghana, Germany exchange notes on the "Avoidance of Double
Taxation"
Accra, Dec. 28, GNA - Ghana and Germany on Thursday signed
an agreement on the avoidance of double taxation by citizens
of both countries.
By the agreement, a citizen or a business entity of either
country can choose to honour specific tax obligations in one
country and would not be required to do so by the other
country, irrespective of place of domicile or where business
establishment is.
Mr Kwadwo Baah- Wiredu, Minister of Finance and Economic
Planning initialed for Ghana and Mr. Peter Linder, German
Ambassador initialed for German before exchanging the
ratification documents of the "Agreement on Avoidance of
Double Taxation and the Prevention of Fiscal Evasion with
Respect to Taxes on Income, on Capital and on Capital Gains"
on behalf of their countries.
Mr. Baah-Wiredu said, with the agreement becoming
operational in January 1, 2007, Ghanaians working in Germany
could chose to honour their tax obligations in Ghana and
would not be obliged to pay the same taxes in Germany, and
vice versa.
"The convention, in the case of Ghana covers Income Tax and
Capital Gains Tax and in the case of the Federal Republic of
Germany; the Income Tax, The Corporate Income Tax, the Trade
Tax and the Capital Tax.
Nationals of both countries now have the flexibility
required to focus on growing their businesses without
expending precious time of dealing with complex tax issues
in two separate tax jurisdiction," the Finance Minister
said.
Mr Baah-Wiredu said Germany was one of Ghana's most
important development partners with relationship dating back
to the last 50 years.
He thanked the German Government for the support and
contributions to key sectors of the economy.
Mr Linder said the agreement signed together with the
Agreement on the protection of investments represents the
very sound basis for the enhancement of private sector
activity and business between the two countries and for
German investors intending to come to Ghana.
"With this agreement, out two governments have closed the
remaining gap in the legal structure which is decisive for
the sound and growing economic relationship between our two
countries, based on private sector activity," the German
Ambassador said.
He said taxation was always a major issue in making business
decisions and hence a sound tax system and a good tax
administration were cornerstones for development.
Mr. Linder expressed the hope that the agreement would
enhance Ghana-German economic relations from the Jubilee
year 2007.
Similar agreements have already been signed with the United
Kingdom, France, and the Republic of South Africa.
Agreements with Holland and the Czech Republic are in the
pipeline to be signed next year, 2007.
GNA
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